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Moderna (MRNA) vaccine to the rescue

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Moderna Inc (MRNA)

The race is on to see which biotech company will cross the finish line first with an approved COVID-19 vaccine and save the world from all this madness.

There are currently a handful of hopeful candidates who have entered phase 3 testing for a COVID-19 vaccine, and Moderna Inc (MRNA) is one of these hopefuls.


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Fundamentals

Moderna has been thrust into the spotlight after the company published results from its COVID-19 vaccine program, which showed the vaccine produced antibodies in all 45 participants in the study. The biotech company is set to move to phase 3 trials by the 27th of July 2020, which will include a more significant number of participants.

The Q1 earnings released was nothing to write home about as the company missed on revenue by some margin and just managed to beat the outlook on earnings per share, by $0.01. The companies next highly anticipated earnings release will show how the vaccine news shaped the balance sheet.

Moderna Inc (MRNA) share overview:

  • Sector: Healthcare
  • Market Cap of $36.88 billion.
  • Dividend Yield: N/A
  • Price/Book: 21.4x
  • Next Earnings: 6th of August 2020.
  • 52 Week Range low of $12.26 and $94.85 per share high.

Moderna’s share price escalated last week Friday as reports came out that the company is negotiating an advance purchase deal with the European Union (EU) for its COVID-19 trial vaccine. The company has been a massive winner during 2020 which has seen the company's share price skyrocket to over 300% and become a firm biotech stock favorite.

Chart Life

The share price has increased over 380% YTD, which could signal a move lower back to the $80.00 per share support level as investors might take some profits off the table. The price action is still in an uptrend with the 50-day simple moving average of price pointing higher.

The average analyst expectations for Moderna Inc (MRNA) are $92.27 per share (red line) with the investment bank, J.P Morgan, lowering its outlook to neutral.

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Informed decisions

Whichever company crosses the finish line first will see its share price reach new highs faster than the dragon spacecraft could enter the outer atmosphere. In contrast, we could see higher volatility levels in stocks like Moderna, especially as competition rises and if company outlooks are revised.

The healthcare sector will continue to be watched closely for vaccine and earnings developments. 

Portfolio particulars

  • Portfolio Hold (Current)*
  • Portfolio Buy opportunity: possible pullback**
  • WhatsTheBeef long term target price:$100.00 per share.

Know your company: Moderna Inc (MRNA)

  • Moderna is an American biotechnology company focused on drug discovery, drug development, and vaccine technologies based exclusively on messenger RNA (mRNA).
  • In December 2018, Moderna became the most extensive biotech initial public offering (IPO) in history.
  • The company was included in the Nasdaq 100 index on the 20th of July 2020.

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Have a look at other noteworthy healthcare sector stocks like JNJ and ABT

Source – EasyResearch, Moderna Inc, Zacks Investment Research, Wikipedia, The Motley Fool, Koyfin.

*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.

**Portfolio Buy opportunity refers to Technical level crossed, which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level.

Take note that all stock data was taken on the 20th of July 2020 during the U.S stock market open

READ:
How to use EasyFX to invest in US stocks

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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

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